Canada Can Bid On Iraq Rebuilding

Bush Reverses Policy Despite Country's Anti-war Stance

January 14, 2004|By Bob Kemper and Hugh Dellios, Chicago Tribune

MONTERREY, Mexico -- In a move that could ease tensions with key U.S. allies, President Bush on Tuesday reversed administration policy and said Canadian firms would be allowed to bid on a second round of contracts for the reconstruction of Iraq even though Canada opposed the U.S.-led invasion of Iraq.

The Bush administration had banned any country that opposed the war from bidding on $18 billion in U.S.-funded reconstruction work.

Reversing that policy for Canada creates the possibility that other nations, including France and Germany, might be allowed to bid for the work despite their anti-war stance, Bush aides said.

FOR THE RECORD - ********** CORRECTION OR CLARIFICATION PUBLISHED JANUARY 15, 2004 **********An article on Page A3 Wednesday about Canadian companies being allowed to bid on Iraq reconstruction contracts reported incorrectly the amount of money Canada has promised for Iraq reconstruction. The correct figure is $225 million.*****************************************************************************

Canada now is eligible to bid on $4.5 billion in contracts to be awarded later this year, administration officials said. Canadian firms had been barred from bidding on about $5 billion in contracts already being awarded.

Bush announced the policy shift on the final day of a Summit of the Americas, where he hoped to smooth relations with America's closest neighbors.

But despite gains with Mexico and Canada, the meeting ended with stinging words from several Latin American leaders regarding Washington's market-driven foreign-aid policies and their failure to help ease poverty and suffering in the region.

The critics grudgingly agreed to a Bush request to affirm a January 2005 deadline on a hemispherewide free-trade pact, but they rejected a U.S. proposal for each country to bar entry of corrupt officials from other nations.

Bush announced the change in Iraq policy with the new Canadian Prime Minister Paul Martin at his side. He praised Canada as a "strong supporter" for contributing $236 billion toward the reconstruction of Iraq even though Canadian officials opposed the war.

Canada also has announced that it would reopen its embassy in Baghdad.

"They want Iraq to succeed; they want Iraq to be free," Bush said. "They understand the stakes with having a free country in the midst of the Middle East."

Granting exceptions for Canada, France and Germany would virtually negate the U.S. policy that allowed only countries with troops in Iraq to share in the multibillion-dollar contracts for everything from restoration of electricity to the construction of hospitals.

French and German leaders also protested the ban. While they too opposed the war, those countries have agreed to forgive part of the $125 billion debt Iraq owes.

During their appearance, Bush and Martin also pledged to work together to combat mad-cow disease after the revelation that a contaminated cow from Canada was discovered in Washington state.

"This is an issue that's going to require close coordination between our two countries," Bush said.